Wednesday, November 22, 2017

Wall St Journal opposes suit over Verizon- Time Warner merger.

Verizon, ($211 billion) wants to take over Time Warner (($79 billion).  The Justice Department is objecting upon anti trust grounds and is threatening (or perhaps actually has) file an anti-trust suit to block it. 
   The Journal, in an OpEd and some coverage in the business section, is saying that the merger in not anti competitive because Verizon and Time Warner are not competitors.  They offer different products and services, and so merging them doesn't reduce competition. 
  Hogwash say I.  They are both in the cable TV and Internet business.  Just cause their services have different names, it's still providing TV and internet. 
   Verizon is too damn big already.  Letting them get even bigger is bad for me.  I'm getting ripped off on TV and internet cable by Time Warner right now.  It got so bad that Time Warner changed its name to "Spectrum" hoping that a lot of Time Warner bad feelings might go away if they changed their name.  When last month's storm took out my electric, telephone, and Time Warner Cable, guess who was the last one to restore service.  You guessed it, Time Warner took two days more than the electric and telephone companies did to restore my service.   Does anyone think that a much  bigger Verizon would be any better?
   We passed the Sherman Anti-Trust Act two centuries ago to limit the size and power of big companies. In the past, Sherman Anti Trust was strong enough to break up Rockefeller's Standard Oil.  They tried to break up IBM in the 1960's but wimped out in the end.  The last gasp of anti trust action was the suit against Microsoft over the browser wars.  Anti-Trust wimped out on that one too, which is why we still have Internet Exploder  letting viruses onto our PC's
   And all those "too big to fail banks" that Dodd Frank is so kind too.  If the damn banks are too big to fail, then they are plenty big enough for anti-trust action. And the humongous InBev merger that Justice OK'ed just this year.
   The Justice Dept should be encouraged to do some more anti trust work. 
  

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